Over 90% of Australian large-cap equity funds underperformed the index in the 12 months ending 30 June 2019.

According to research just released by S&P Dow Jones, in their SPIVA Australia Scorecard, Australian large-cap equity funds achieved an average return of 6.3% for the 12 months to 30 June 2019. If you had simply invested in the S&P/ASX 200 index your return would have been 11.6% – a considerable return difference.

We are often told that past performance is not an indicator of future performance, and that is a valid maxim, however this underperformance of active fund managers in Australia is not an isolated occurrence or an anomaly. According to the report, had you invested with an active Australian large-cap equity fund manager over the past 15 years, you would have underperformed the ASX 200 more than 80% of the time.

The SPIVA report highlights that while there is no consistent trend in yearly active versus index figures, they have consistently observed underperformance for the majority of Australian active funds in most categories for longer periods (5-, 10- and 15- year periods), for example active Australian International equity managers have underperformed the index over 90% of the time over 10 and 15 years.

Are you invested with an underperforming active fund manager ? The consequences of this in achieving your financial goals are significant. Ask your Experien Financial advisor to review your investments. Contact us here.

This information is general in nature and should not be relied on for your personal financial planning needs. You should seek personal financial advice of your own. This information is general in nature and should not be relied on for your personal financial planning needs. You should seek personal financial advice of your own.